Environmental resources, public inputs and fiscal constraints

• Omar Chissari ^[1] ; Fernando Navajas ^[2]
  1. [1] Consejo Nacional de Investigaciones Científicas y Técnicas

     Consejo Nacional de Investigaciones Científicas y Técnicas

     Argentina

     
  2. [2] Cepal, Comisión Económica para América Latina y el Caribe. Argentina.
• Localización: Revista de análisis económico, ISSN-e 0718-8870, ISSN 0716-5927, Vol. 5, Nº 2 (Editor Invitado: John Dixon), 1990, págs. 61-68
• Idioma: inglés
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• Resumen

  • We study the consequences of a binding constraint on the level of public expenditures directed at sustaining an environmental resource, which enters as a public input (alongside capital) into the economy-wide production function. As expected, the long run stock of that resource is reduced: however, we also find that the long run capital stock is reduced in a larger proportion. Also, the capital-environmental resource ratio becomes sensitive to changes in the rate of interest.